Growth is booming in the Gulf & Middle East

By International Monetary Fund

According to?our recent policy paper?on economic prospects and challenges facing the GCC countries, economic growth in these countries—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates—is estimated to have more than doubled in 2022, to 6.5 percent, reflecting high global oil prices. Fiscal surpluses amounted to over $100 billion last year, but our analysis suggests that GCC countries will save far more of this windfall than during previous oil price booms because of fiscal and structural reforms taken in the region. Read this?Country Focus article?to learn more or watch Jerome Vacher, one of the authors of the IMF paper, discuss the paper findings?here .

In our?October REO , we found that in 2022 MENA oil importers resorted to the policies of the past to shield their economies from spiking in commodity prices. Importantly, however, this time subsidies and tax cuts were on a much smaller scale. The 2022 commodity upswing is comparable to those of 2008 and 2011, but countries are estimated to have increased subsidies by around half as much last year as during previous episodes.

After struggling with poverty, violence, and other risks for decades, fragile and conflict-affected states must now contend with the scars of the pandemic and the economic fallout from Russia’s invasion of Ukraine.

Managing Director visits Dubai

The IMF’s Managing Director Kristalina Georgieva attended the Arab Fiscal Forum in Dubai and urged policymakers to strengthen the resilience of their public finances to protect their people, economies, and climate. You can read her opening remarks?here .

Also during her Dubai visit, the Managing Director spoke to CNN’s Richard Quest?in a panel?and?an interview ?about the global outlook and the need for an urgent humanitarian response to the recent earthquake in Turkey and Syria, and engaged with the media.?Speaking to Bloomberg Asharq,? the Managing Director argued that Egypt's path toward economic reform includes making room for the private sector and attracting foreign investment.

The Managing Director also met with officials on the sidelines of the World Government Summit, including the?ruler of Duba i,?Egypt’s? President, and?Tunisia’s Prime Minister.

In one of our many events and seminars organized in the runup to the Annual Meetings in Marrakech in October, the Managing Director appeared on a?panel ?moderated by CNBC’s Hadley Gamble to discuss the risks of global fragmentation. She warned that policymakers need to “think of the unthinkable” as we now live in a more shock-prone world and said,

“we all have to change our mindset to be much more agile and much more oriented towards building resilience at all levels, so we can handle the shocks better.”

Reinvigorating global cooperation—together with building resilience and securing a transformational recovery—is a core theme of the Marrakech 2023 Annual Meetings.

First Deputy Managing Director Trip to Saudi Arabia

In March, the IMF’s First Deputy Managing Director, Gita Gopinath, met with the Saudi finance and investment ministers to discuss areas of cooperation with the Fund. She also gave?an interview to Bloomberg Asharq ?where she explained IMF financing and capacity development work in the region.

At the end of her trip, she met with a?group of trailblazing Saudi women ?who shared their experience working as entrepreneurs in the Kingdom.

First Deputy Managing Director Trip to Saudi Arabia

The IMF’s Deputy Managing Director, Kenji Okamura, visited Morocco in March to discuss IMF support and economic resilience with?Morocco’s Prime Minister and Central Bank Governor . He also?met with representatives ?of the country’s banking sector and visited the?Al Fakih Azouiten school ?in Casablanca.?

Shortly afterward, the DMD headed to Mauritania to?meet with the President and other government officials ?to discuss the country’s $86.9 million 42-month IMF-supported program. The program aims to preserve macroeconomic stability, strengthen fiscal and monetary policy frameworks, promote sustainable, inclusive growth, and reduce poverty. You can read more?here ?and learn about how Mauritania can reduce the impact of climate disasters on its economy in this recent?Country Focus story .

While in Mauritania, DMD Okamura?participated in a university event ?and gave opening remarks to students at a panel discussion on the IMF’s recently published book,?Promoting Inclusive Growth in the Middle East and North Africa: Challenges and Opportunities in a Post-Pandemic World, available?here . He also paid a visit to?the Safia Center ?to hear girls’ perspectives on their access to economic opportunities in Mauritania and?toured the Nouakchott Green Belt Project ?to learn more about the country’s fight against desertification.

Credit: International Monetary Fund -MENA, Jihad Azour

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